Shehbaz Sharif says Pakistan overcame near default in 2023 through collective efforts, aiming to achieve economic stability
Prime Minister Shehbaz Sharif speaks at the opening ceremony of Indus AI Week in Islamabad. PHOTO: RADIO PAKISTAN
Prime Minister Shehbaz Sharif on Wednesday emphasized the need for a “whole of government approach” to address Pakistan’s economic challenges, urging all stakeholders to work collectively towards sustained growth.
“Though the journey may be long, arduous and thorny, we have accepted the challenge. Pakistan will soon take its rightful place,” the prime minister said at the inaugural session of Pakistan Governance Forum 2026 in Islamabad.
Reflecting on the near-default situation in Pakistan in June 2023, he said that with divine guidance and collective efforts, the country had come out of the abyss. He praised the federal and provincial governments, as well as the military, for stabilizing the macroeconomic situation over the past two years.
“We were on the verge of default, but today the macroeconomic situation has stabilized and inflation, which was around 35%, has been reduced to less than 7%,” he stated. He added that the official rate had been reduced to 10.5% and highlighted the need for gradual growth in exports to unlock Pakistan’s economic potential.
The prime minister highlighted the government’s internal reforms and noted that the International Monetary Fund (IMF) had no role in these measures, which were necessary to avoid a cycle of boom and bust. He also cited a Rs 9 per unit reduction in electricity prices, investment initiatives in solar energy and measures to curb power theft, which costs the country around Rs 200 billion a year.
Prime Minister Shehbaz said that the closure of corrupt entities such as Utility Stores Corporation and the Pakistan Works Department had saved the nation billions. He also highlighted the Ramazan Package, which distributes Rs 38 billion to deserving families through digital wallets, and described the process as transparent.
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“The government’s role is not to do business but to facilitate the private sector, exporters and investors to support productivity and growth,” he said. The prime minister highlighted that resource-rich Pakistan could surpass other countries in economic strength through joint efforts.
He also called for expanding the tax net, noting that the current tax-to-GDP ratio is 10.5%, and urged growth in exports, investment and foreign direct investment. The Prime Minister praised the 34% growth of the IT sector and emphasized the need to invest in technical and vocational training, while underlining the transformative potential of IT and AI-driven initiatives.
He concluded by praising Planning Minister Ahsan Iqbal for the Uraan Pakistan initiative and expressed confidence that the whole-of-government approach would succeed.
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In his speech, Iqbal said the forum was designed to generate viable solutions through debate and shared perspectives. He stressed that good governance should be merit-based, transparent and citizen-centric, noting that the Uraan Pakistan initiative serves as a transition strategy for the economy.
Iqbal highlighted the achievements of the government in the last two years and said, “If the transformation path is followed with full capacity and positive synergy, Pakistan could become a trillion-dollar economy by 2035.”
The forum was attended by important government officials, provincial ministers, diplomats, business leaders, experts and traders.
